Kuala lumpur: The Public Accounts Committee (PAC) has proposed 17 recommendations to the government, particularly the Ministry of Finance (MOF), Bank Negara Malaysia (BNM), and the Ministry of Health (MOH), to tackle rising health insurance premiums and private hospital charges. PAC chairman Datuk Mas Ermieyati Samsudin stated that these proposals were part of a statement presented in the Dewan Rakyat today, amid increasing public concern over escalating healthcare costs and Malaysians' ability to sustain their insurance coverage.
According to BERNAMA News Agency, PAC has recommended that the MOF, BNM, and MOH introduce a new independent governance structure for private healthcare to safeguard consumers, including oversight of insurance pricing and benefits. Mas Ermieyati urged the MOH to collaborate with the Ministry of Domestic Trade and Cost of Living (KPDN) to establish a pricing control mechanism for medicines and medical equipment, ensuring costs remain reasonable and no party makes excessive profits.
Mas Ermieyati emphasized that the MOH should explore sourcing supplies directly from manufacturers, prioritizing local producers to reduce dependence on the dominance of suppliers or certain cartels. Furthermore, PAC proposed that the MOH expedite the rollout of the Diagnosis Related Group (DRG) system in the private healthcare sector and hasten amendments to the Private Healthcare Facilities and Services Act 1998 (Act 586) to allow the ministry to regulate hospital charges beyond doctors' consultation fees.
The MOH is encouraged to empower and pursue initiatives that widen access to affordable medical care, while also acting as a pricing benchmark for the private healthcare sector. Additionally, it was suggested that MOH and BNM enhance existing complaint and dispute-resolution mechanisms for insurance and healthcare costs to resolve issues more efficiently and effectively.
Mas Ermieyati noted that PAC has also recommended BNM issue more detailed and standardized operational guidelines (standardized FAQs) to prevent insurers from manipulating interpretations of interim measures introduced by the government. BNM is urged to impose strict punitive actions against any insurer found manipulating interpretations or failing to comply with interim measures, thereby affecting the welfare and interests of policyholders.
The central bank is advised to push the insurance and takaful sector towards incremental annual repricing, ensuring smaller and steadier premium adjustments to avoid sharp financial shocks to policyholders. Additionally, PAC suggested that the Malaysia Competition Commission (MyCC) provide guidance to stakeholders on discount negotiation practices between hospitals and insurers to ensure a fair process that does not affect patients' access to care.
To minimize financial shocks for consumers, PAC has proposed that the insurance and takaful industry shift towards incremental and stable annual premium adjustments, and reassess group-based premium pricing to ensure greater fairness and sustainability. The committee also underscored the need for the government to establish a clear and realistic implementation timeline for all RESET (Regulatory Enhancement for Sustainable and Efficient Takaful/Insurance) measures, ensuring structured preparation for long-term, sustainable outcomes.
The recommendations came after public hearings on the matter in Penang and Kuala Lumpur on February 14 and 21 last year, followed by 19 proceedings held between February 24 and August 14, 2025, with the statement subsequently finalized over four days. Twenty-one witnesses were called to provide evidence, including officials from the MOF, the MOH, BNM, the Association of Private Hospitals of Malaysia (APHM), non-governmental organizations, academic representatives, and stakeholders from the insurance and takaful sectors.